A new report released today by energy and sustainability consultancy Advantage Utilities suggests that new Government incentives coupled with the continued wholesale energy crisis now makes renewable energy generators the greenest and most affordable method of energy consumption for London businesses.
In their latest report, ‘Cost Mitigation & Route to Net Zero’, experts at Advantage Utilities suggest that renewable energy generators installed on a site can produce electricity at the fraction of the price of grid consumption.
Commonly termed the Levelized Cost of Electricity (LCoE), these generators commonly produce figures at 1p/kWh to 5p/kWh over the warrantied lifetime of a system. The decentralised nature of renewable energy generators means that they are a completely separate source of energy from the grid. Businesses in London can therefore protect themselves from the volatile changes in whole gas and power markets.
In addition, the greatly reduced carbon and greenhouse gas emissions from these generators ensures they have excellent ESG credentials, dramatically enhancing the sustainability of the site’s operation.
The Government’s Spring Budget brings further benefits for those looking to invest in onsite renewable generators, with the costs falling under their ‘Full Capital Expensing’ and ‘First Year Allowance’ policies. Running from April 2023 to March 2026, this policy (depending on the nature of the equipment) enables qualifying businesses to deduct between 50% and 100% of the capital equipment cost from their year-end taxation.
These factors combined means that this year presents the ideal opportunity for London businesses to start transitioning their energy needs to onsite renewable energy generators.
Dr James Crosby, Head of Sustainability at Advantage Utilities said, “The market has come down considerably in relation to the highs of recent months but we are still in an energy crisis based on the wholesale market.
Furthermore, whilst more renewable generators are coming online, the grid still remains a highly pollutive method of energy consumption. That’s why businesses should prioritise moderating their energy cost and enhance their sustainability credentials by exploring additional onsite generation and efficiency technologies. Implementing these will enhance their abilities to produce their own sustainable energy and decrease their consumption from the grid.”